Highlights of the Railway Budget for 2008-09

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)

28 February 2008  

Highlights of the Railway Budget for 2008-09, presented by Railway Minister


Quick summary:
a) Market response was positive (but not resounding, since there were no big surprises)
b) Strategy of gaining volume by keeping prices low continues (certain freight and passenger fares lowered; no fare hikes; freight accounts for about 65% of revenue).
c) Spending plans include more trains as well as technology upgrades.


Initiatives for making traveling easy:

Low Fare

  • Discounts in fares in various classes of travel
    Class Busy Season Lean Season
    AC First 3% 6%
    AC 2-Tier 2% 4%
    AC-3 Tier (81 berths) 4% 8%
    AC-3 Tier (64 berths) Nil Nil
    AC CC (102 seats) 4% 8%
    New Sleeper Coaches (84 berths) 4% 4%
    Sleeper Class (72 berths) Nil Nil
  • Supplementary charges for Superfast Trains for Second Class shall be reduced from Rs. 10 to Rs. 8.
  • It has been proposed to introduce Tourist Tickets from any station to any station in Mumbai Suburban area as a pilot project. The fares for Second Calls Tourist Tickets shall be Rs. 40, Rs. 75 and Rs. 90 for 1, 3 and 5 day respectively.
  • All passengers above 60 years of age will now get a 30% discount, while females above 60 years would get a 50% discount.
  • 50% concession to students appearing in upsc/ssc exams.
  • The freight on petrol and diesel has been cut by 5%, while those on fly ash have been cut by 14%.


Better Facilities

  • Frequencies of 14 trains to be increased along with the extension of 23 existing train routes.
  • Availability of earmarked coaches for vendors in passenger trains. More convenient, comfortable and high capacity new design passenger coaches will be manufactured.
  • e-tickets will be issued through e-seva of State Governments, Post Offices, petrol pumps and ATMs of Banks.
  • Hand held computer terminals will be provided to TTEs in reserved coaches to improve occupancy.
  • The number of computerized UTS counters will be increased to 8,000 over the next two years. 6,000 automatic ticket vending machines will also be installed in major cities and connected with UTS terminals.
  • Go-Mumbai Card/ Smart Card facility will be launched for easier ticketing for commuters.
  • An increase in ticketing counters to 15,000 in the next 2 years from the current 3,000.
  • 50 large stations across the country will have lifts and escalators while 30 bigger stations would have multi-level parking system.


Technology Upgradation

  • Railways to invest Rs 2.5 lakh crore in next five years for upgradation of information technology network.
  • Rs 4,000 crore would be spent on green toilets for 36000 coaches in the next 5-year plan.
  • All the trains will be run via online control in the next two years and the trains would be linked via software communication by 2009.
  • CCTVs and metal detectors would be put up at all stations.

 
Annual Outlays and Plans

  • An outlay of Rs. 31,000 crore for the Annual Plan 2007-08 has been proposed, an increase of 32% over previous year and would be the largest Annual Plan for the Railways so far to maintain the high growth rate. This includes:
    • Support of Rs 7,611 cr from General Revenues.
    • Internal Generation of Rs 17,323 cr.
    • Extra Budgetary Resources of Rs 5,740 cr.
    • 200 Diesel, 200 Electric engines and 11,000 wagons to be produced.
    • Outlay on project related Plan heads: New Lines Rs 1,610 cr, Gauge conversion Rs 2,404 cr, Electrification Rs 300 cr, Metropolitan Transport Projects Rs 722 cr.
    • Outlay on Safety related Plan heads: Track renewal Rs 3,360 cr, Bridges Rs 597 cr, Signal & Telecommunication works Rs 1,597 cr, Road over/under bridges Rs 551 cr and manning of unmanned level crossings Rs 500 cr.
    • Important Targets: New Lines 500 kms, Gauge Conversion 1800 kms, Doubling 700 kms.
    • Rs 2,725 cr required for four National Projects.
    • Rs 1,00,000 cr investment via PPP.
    • Railways to invest Rs 75,000 crore to upgrade infrastructure over the next seven years.
    • Rail coach manufacturing facility to be set up in Kerala.

    Performance
    • Railways is expected to report a cash surplus of Rs 25,000cr in FY08.
    • Revenue from passengers fare increased 14% in 2007-08 as reduced fares increased volumes and profits. Revenues from freight loading increased by 8.2% in the first 9 months of 2007-08.
    • Rail operating ratio is at 76.3% with a work force of 14 lakh.

    Best Regards,